MHADA Vice president and CEO Sanjeev Jaiswal Decision comes into effect on the directions issued by Deputy Chief Minister Devendra Fadnavis. Mumbai,
Maharashtra Housing and Area Development Authority (MHADA) has decided to reduce the penal interest on delayed payments of installments against various premiums to be paid in respect of Building Permission in the redevelopment projects of MHADA from the existing 18% to 12% annually. This information was announced today by Sanjeev Jaiswal, Vice President and CEO of MHADA . Maharashtra Deputy Chief Minister Devendra Fadanvis echoed concern over the development premiums on housing projects that MHADA levies on. When there is a delay in paying these charges, the penal interest rate of 18% is imposed on the developers is higher and there is a need to reduced it , as expressed by Deputy Chief Minister Devendra Fadnavis during his visit to the National Real Estate Development Council’s Property Exhibition held on November 26, 2023.
As per the instructions issued by Deputy Chief Minister Devendra Fadnavis and directives given by Minister of Housing Development Atul Save, Jaiswal asked the officers concerned to review and take necessary action into the matter. Alongside, in accordance with the given directives, a proposal was immediately drafted to reduce the interest on delayed payments delayed payments of installments against various premiums from 18% to 12% for the redevelopment projects.
Jaiswal further confirmed that a directive addressing concerned officials has been issued at the MHADA level through a circular. It may be recalled that the Maharashtra government has granted MHADA the status of a development authority with control over 114 layouts in the Greater Mumbai region. MHADA holds jurisdiction over the land and the authority to regulate it. For the redevelopment of old MHADA properties, permissions are being processed through three independent departments at MHADA headquarters: the Layout Approval Section, the Building Permissions Department for the Greater Mumbai area, and the Urban Housing Scheme under the Prime Minister’s Housing Scheme.
The Building permission department carries out its activities adhering to the provisions in the Maharashtra Region and Town Planning Act of 1966. On this background the decision to reduce the penal interest on delayed payments of installments against various premiums to be paid in respect of Building Permission in the redevelopment projects of MHADA from the existing 18% to 12% annually has been taken on lines of provisions made in BMC circular of 27th September 2022. Moreover, Mr. Jaiswal indicated that as per Section 124 (e)(3) of the MRTP Act, the development charges for the redevelopment projects come under the category of development premiums. further as per the provisions in this act, in the case of delays in payment of these charges by developers, an annual interest rate of 18% is being applied. Jaiswal further mentioned that a proposal has been submitted to the Urban Development Department of the government to further reduce this interest rate too.
